Posts tagged with: economic growth

The highly popular “buy-one, give-one” models — as epitomized by the popular TOMS Shoes brand — have long held the attention of Western do-gooders. It’s quick, it’s easy, and hey, people like the shoes. And let’s not forget the power of the Warm & Fuzzies.

Yet many are beginning to raise concerns about the actual impact of these activities. As Acton’s Michael Matheson Miller recently explained in an interview with Knowledge@Wharton, “The one-for-one model can undermine local producers. When you give free things, why would you buy local shoes?”

In the debut of his new smarty-pants comedy show, “Adam Ruins Everything,” Adam Conover chooses to set his sights on precisely this:

To their credit, TOMS Shoes has taken certain steps to reconsider its model, including a decision to “employ 100 Haitians and build a ‘responsible, sustainable’ shoe industry in Haiti.” But alas, by all public appearances, there is still a ways to go. (more…)

china-christiansFor the past three decades China has been the world’s fastest-growing major economy, with growth rates averaging 10 percent a year for 30 years. As Brian J. Grim, founder and president of the Religious Freedom & Business Foundation, notes, there are many reasons for the growth, such as market mechanisms, modern technology and Western management practices. But one factor that is often overlooked is the role of Christianity:
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In the United States, we’ve only begun to see how impediments to religious liberty can harm and hinder certain businesses and entrepreneurial efforts. Elsewhere, however, particularly in the developing world, religious restrictions and hostilities have long been a barrier to economic growth.

To identify these realities, Brian Grim of Georgetown University and Greg Clark and Robert Edward Snyder of Brigham Young University conducted an extensive study, “Is Religious Freedom Good for Business?,” which concludes that “religious freedom contributes to better economic and business outcomes.”

Katrina Lantos Swett and Daniel Mark summarize the key findings at Investor’s Business Daily:

Reviewing the GDP growth of 173 countries while controlling for 23 financial, social and regulatory factors, [Clark and Snyder] found that religious freedom not only is associated with global economic growth, but also is one of only three factors carrying that association.

As the study found, 20% of countries with low levels of religious hostilities and 20% nations with low levels of government restrictions on religion were economic innovators, while the figures for nations with high levels of hostilities and restrictions were only 8% and 7%, respectively.

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In 1820, America’s per capita income averaged $1,980, in today’s dollars. But by 2000, it had increased to $43,000. That economic growth has benefited the rich, of course. But it has also transformed the lives of the poor — and prevented many more from becoming or staying poor.

In this superb short video, the American Enterprise Institute briefly explains the moral value of economic growth.

Regulatory Climate IndexThe revitalization of cities has become a significant focus among today’s Christians, with many flocking to urban centers filled with lofty goals and aspirations for change and transformation.

Last summer, James K.A. Smith expressed concern that such efforts may be overly romanticizing certain features (community!) to the detriment of others (government), concluding that “farmer’s market’s won’t rescue the city” but “good government will.” Chris Horst and I followed up to this with yet another qualifier, arguing that while both gardens and good governance are indeed important, so is business and entrepreneurship.

Families, churches, institutions, businesses, and governments all need to be in right relationship if cities are to flourish, and this means that Christians need to gain a clear understanding of what these relationships look like. How do the economies of love, creative service, wisdom, wonder, and order interact and intersect, and how do we orient our actions and attitudes accordingly?

For example, if a city’s economic future is driven, among other things, by entrepreneurialismhigh levels of human capitalclustering of skilled workers and industries, or in the case of North Dakota’s Bakken region, bountiful natural resources, what role should the People of God play therein? What role do families play in those endeavors? What about churches, community associations, organizations, or businesses? How ought public policy to guide (or not guide) various efforts? Christians are called to be concerned with all of the above.

In a new study by the U.S. Chamber of Commerce Foundation — Regulatory Climate Index 2014: The Cost of Doing Business in America — we see a great example of the types of questions we ought to be asking. Focusing on 10 cities across America, the study investigates “the efficiency of local regulations that apply to small businesses,” demonstrating the full impact that the dirtier, more “boring” and mundane elements can have on whether and how individuals are empowered to invest, serve, and sacrifice within and for their cities. (The project was led by Michael Hendrix, who has contributed here on the blog in the past.) (more…)

liberal-conservativeWe read the same Bible and follow the same Jesus. We go to the same churches and even agree on the same social issues. So why then do liberal and conservative evangelicals tend to disagree so often about economic issues?

The answer most frequently given is that both sides simply baptize whatever political and economic views they already believe. While this is likely to be partially true, I don’t think it is a sufficient explanation for the views of more thoughtful and sophisticated evangelicals (which naturally, dear reader, includes you and me).* Even if we start with our naturally acquired political orientation, our engagement with the Bible tends to have a dialogical effect, causing us to modify and rethink our economic views in light of principles we discern from Scripture.

Because we conservatives and liberals come to different conclusions, though, one side will be right and the other wrong (or at least more right and more wrong than the other). We all believe our views on economics are true, which is why we are justified in holding these beliefs and think those who disagree are necessarily wrong. That is just how belief works.

But we often don’t have a sufficient depth of understanding about each others fundamental economic beliefs to know why exactly we come to such different conclusions. Too often we express disagreements about policy without comprehending what guiding principles are motivating our differences of opinion.
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Blog author: johnteevan
Thursday, September 5, 2013
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Simon Vouet - La Richess - c. 1633Sustained prosperity is new and sustained prosperity for masses of people is completely unprecedented. What is sustained prosperity? It’s three or more generations of people who do not need to focus on survival or live in economic depression, but who can live comfortably even if they live paycheck to paycheck.

The only people who previously enjoyed sustain prosperity were the aristocratic landowners and royals especially of Europe and Asia. After the industrial revolution a few business men and bankers were added to that list but only if their wealth was handed down for more than two generations. No even we do.

Isn’t this the definition of the very rich? Yes, but what is new is that the entire group of people we call the ‘middle class’ has also become comfortable in the four generations since WWII.

How big is the middle class? Even though there are billions who do not enjoy this prosperity, fully 1.80b people are in the global middle class today (and another .15b people are rich). Of that 1.8b there are 18% who live in the U.S., another 36% live in Europe, and 20% are in the BRIC nations.

How did so many join the middle class? It was through the opportunities of new businesses, new inventions, a new high level education for the public, and new skill and knowledge based jobs. These are only possible where there is liberty and governments that allow businesses to prosper.

Why do Africa, the Mid-East, and Latin America have a very small middle class population? Because those regions still retain the old definitions of aristocratic and inherited wealth. That’s the polite way to say it. The reality is more that corrupt governments have plundered their own nations and their own people by corralling the wealth of the land including oil and minerals for themselves.
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